On Friday August 31, Whitbread announced it would sell Costa to Coca-Cola to the tune of £3.9bn. The deal will enable Whitbread to focus more on the expansion of its hotel brand Premier Inn.

Commenting on the deal with Coca-Cola, Alison Brittain, chief executive at Whitbread, said she was proud of what the company and Costa had achieved together in the last two decades. However, she believed it was the last few years’ focus on growing the business into a multi-channel and international brand that has made the acquisition with Coca-Cola such a good fit. “[It] has resulted in this unique strategic opportunity to combine the Costa brand with Coca-Cola’s global scale, product and distribution capabilities,” Brittain explained. “This combination will ensure new product development, continued growth in the UK and more rapid expansion overseas. As a result of this strategic sale our teams, pensioners, suppliers, shareholders and other stakeholders will all have the opportunity to share in the benefits.”

While Coca-Cola has a ready-to-drink coffee offering in Japan, it doesn’t have a broad global portfolio in the market. But by gaining access to Costa’s shops and its Costa Express vending machines , the soda giant aims to change that.

Speaking of the deal, James Quincey, president and CEO at Coca-Cola, said: “Costa gives Coca-Cola new capabilities and expertise in coffee and our system can create opportunities to grow the Costa brand worldwide.

“I’d like to welcome the team to Coca-Cola and look forward to working with them.”

The holidays may still be a long time coming but it seems as if Christmas came early for the Costa franchisees who are sure to benefit from Coca-Cola’s awesome distribution network.

About the Author

As web editor and resident Viking, Johansson ensures Elite Franchise is filled with engaging and eclectic entrepreneurial stories. While one of our most prolific franchise writers, he has sharpened his editorial teeth by writing about entertainment and fitness. Follow him on Twitter at @EricJohanssonLJ to catch up with his stream of consciousness.